Canada's national energy regulator launches a sweeping audit of TransCanada's (TRP) systems, including its management, risk-assessment, inspection and training practices. The review involves all units regulated in Canada including the 2,763-km Keystone pipeline between Canada and the U.S., according to a letter sent by the National Energy Board to TRP.

This is not a measure designed to slow up US approval of the Keystone pipeline extension in the US. Rather, the Canadian National Energy Board is preparing the way for a speedy resolution of two anticipated developments concerning TransCanada: (a) Retooling the route between Alberta and Sarnia in Ontario (i.e to facilitate shipment east of oil from Alberta to eastern Canadian markets for refining) and (b) Removing possible delaying issues that might further stall a decision by US authorities after the US election to approve Keystone XL. In both these cases, the questions about TransCanada's current operations might be raised and it is best therefore to address these matters now in anticipation.

Thank you for your reply and additional information, Bob. If I remember correctly, you are Canadian and knowledgeable re TRP. The article itself has a not too flattering picture of Darryl Hannah, in handcuffs, apparently at a demonstration with environmental objections to Keystone XL relating to the Ogallala Aquifer in Nebraska. In fact, all objections I can recall are promoted by environmentalists, tho extensive measures and reroutes have been taken. I've long been interested in TRP, and particularly if Romney is elected, plan to watch for an opening. Any advice?

While I hold TRP and think their prospects are good regardless of the Keystone XL outcome, I don't claim any special insight.

On the positive side, regardless of the price of oil and natural gas there will be continuing and growing demand to move large volumes great distances. As a large and long established company in this field with great routes TRP is well placed to prosper in this environment. Also, they appear to be a well managed company. On the other hand, several of their pipelines include pipe and facilities that are old and were built when standards were different than at present. In other words, the constant cost of upgrading current pipe and facilities (and the risks entailed insofar as upgrades do not occur in time) might be a concern.